She also asked questions about the creation of venture funds and measures to support startups that are developing based on higher education.
The Deputy Director of the National Investment Agency, Zhalyn Zheenaliev, reported that there is only one business angel in the country, but it is expected that their number will increase after the adoption of the new legislative project.
This issue was raised during the discussion of the draft law "On Amendments to Certain Legislative Acts of the Kyrgyz Republic on Venture Financing" (first reading).
Note:
On February 13 and 17, the Cabinet of Ministers presented two draft laws for consideration by the Jogorku Kenesh:
1) "On Amendments to Certain Legislative Acts of the Kyrgyz Republic on Venture Financing";
2) "On Venture Financing".
Both documents were developed by the National Investment Agency. The first draft law amends existing laws and regulatory acts, including the Civil Code, the law on companies and partnerships, the law on investment funds, the law on competition, and the law on innovative activities.
The second draft law is a new regulatory act that includes terminology from the field of venture investing. In particular, it introduces the definition of "business angel," which is considered an individual who invests funds in startups and early-stage innovative companies, as well as providing their knowledge and experience for their development.
According to the glossary of the U.S. Securities and Exchange Commission, a business angel is a wealthy investor who invests their own funds in startup companies, most often at early stages of financing. Most of these investors are accredited and often have entrepreneurial experience themselves. In the U.S., the main criteria for an "accredited investor" are:
• individual net worth exceeding $1 million (excluding primary residence);
• income over $200,000 per year (individually) or more than $300,000 for the last two years (together with a spouse);
• possession of certain professional licenses.
